Dick Smith said sales for the year ended June 29 reached $1.228 billion, 4 per cent short of 2013 sales of $1.280 billion but exceeding the $1.226 billion forecast in its November prospectus.

After adjusting for inventory clearance activity in 2013, sales in the 12 months ending June 2014 rose 4.2 per cent.

The better than expected sales result followed strong sales growth in Australia in the June quarter, with total sales rising 15 per cent and like-for-like sales up 4 per cent, despite a slump in consumer sentiment and discretionary spending after the May budget.

Dick Smith chief executive Nick Abboud said the group’s strong offers continued to resonate with consumers and the chain had experienced no drop in demand after the budget.

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“We had our best trading month in the month of June," Mr Abboud said, attributing the gains to a well-received tax-time marketing campaign.

“Consumers continued to come to Dick Smith to buy the latest PCs or routers," he said.

Mr Abboud reaffirmed full-year profit forecasts. Earnings before interest tax depreciation and amortisation are expected to reach $71.8 million, compared with EBITDA of $23.4 million in 2013 and $32.6 million in 2012, the last full year under Woolworths’s ownership.

Net profit is expected to reach $40 million, compared with $6.7 million in 2013 and $13.2 million in 2012.

Mr Abboud wants Dick Smith to become the most profitable consumer electronics retailer in Australia – stealing the title from rival
JB Hi-Fi
– by growing its store network, building its online offer and new mobile technology format, increasing its private-label range and negotiating better deals with suppliers.

The chain has opened a net 54 new stores in the last 12 months, taking the network to 377.

Mr Abboud plans to open 20 new stores in 2015 and sees scope for 450 stores longer term.

Private equity firm Anchorage ­Capital bought Dick Smith from Woolworths for $94 million in September 2012 and sold all but 20 per cent of its stake in an initial public offer last December, making a profit of about $264 million.

Dick Smith shares rose 5.8¢ to $1.987 on Monday but remain below their $2.20 issue price, even though the chain has reaffirmed sales and earnings guidance four times in the past six months.